Yahoo (YHOO) falls 2.53 to 23.62 on news it has concluded talks with Microsoft (MSFT) without reaching a deal, and is close to a search-advertising pact with Google (GOOG):
Lehman Brothers Holdings (LEH) says, effective immediately, Herbert H. McDade III will succeed Joseph Gregory as president and chief operating officer, and Ian Lowitt will succeed Erin Callan as chief financial officer. Lowitt also will join LEH's Executive Committee. Callan, who has served as CFO since December 2007, will be rejoining the Investment Banking Division in a senior capacity. Separately, Hank Greenber reportedly said to proceed with plans to buy shares of LEH. S&P keeps hold.
Citigroup downgrades ethanol-related stocks as unprecedented rainfall damages the corn crop and ethanol prospects. It cuts Verasun Energy (VSE) and BioFuel Energy (BIOF) to sell from buy; while taking Archer-Daniels-Midland (ADM ) down to a hold, as ADM has other businesses that could possibly mitigate problems in ethanol.
Invitrogen (IVGN) agrees to acquire Applera (ABI) in a cash and stock transaction valued at $6.7 billion. Terms: ABI holders to get $38 per share for each share held in the form of IVGN stock and cash. The expected split between cash and stock is 45% and 55%, respectively.
Anheuser-Busch (BUD) says it received an unsoliticed offer from InBev (INBVF)to acquire the beer company for $65 a share in cash. Anheuser-Busch said that its board of directors will evaluate the proposal carefully.
KeyCorp (KEY) plans to raise approximately $1.5 billion in new equity capital to offset tax accounting charges and maintain strong capital ratios. To cut quarterly dividend by 50%, beginning in the third quarter.
Citigroup (C) plans to restructure Old Lane and its multi-strategy hedge fund, whereby certain Old Lane strategies will be integrated into proprietary activities of Ciri's Securities & Banking business. Citi will purchase substantially all of the assets of the multi-strategy hedge fund at fair value. Estimates 2008 impact from Old Lane's restructuring is an increase in Citi's GAAP assets of about $9 billion. In addition, on a pro forma basis, Citi's Mar. 31, 2008 Tier 1 capital ratio of 7.74% would have declined by about 4 basis points, to about 7.70%.
U.S. Shipping Partners L.P. (USS) says business conditions remain challenging due to high crude oil prices and reduced demand in the Jones Act market. Also says utilization and spot market rates remain lower than in the comparable period in 2007. In addition, says it has entered into negotiations with its lenders to amend certain financial ratio covenants.
WSJ reports that angry American Imternational Group (AIG) shareholders are ratcheting up their campaign against the insurer, demanding changes to the board in addition to management changes they sought earlier. The Journal article says, "The shareholders, former director Eli Broad and fund managers Shelby Davis of Davis Selected Advisers LP and Bill Miller of Legg Mason Inc., said in a letter sent to the board Wednesday that significant and immediate changes at both the management and board level are clearly called for."
Caterpillar (